Aurelia Finance: Difference between revisions
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{{Infobox company |
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| name = Aurelia Finance |
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| logo = |
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| trading_name = <!-- d/b/a/, doing business as - if different from legal name above --> |
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| native_name = <!-- Company's name in home country language --> |
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| native_name_lang = <!-- Use ISO 639-2 code, e.g. "fr" for French. If there is more than one native name, in different languages, enter those names using {{tl|lang}}, instead. --> |
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| former type = |
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| type = [[private bank]] and fund-management company |
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| industry = |
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| genre = <!-- Only used with media and publishing companies --> |
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| foundation = <!-- City, Country ({{Start date|df=yes|YYYY|MM|DD}}) --> |
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| defunct = <!-- {{End date|df=yes|YYYY|MM|DD}} --> |
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| location_city = [[Geneva]] |
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| location_country = Switzerland |
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| locations = <!-- Number of locations, stores, offices &c. --> |
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| area_served = |
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| key_people = Directors Vladimir Stepczynski, Pascal Cattaneo, Olivier Ador, Laurent Mathysen-Gerst, and Jean-Marc Wenger |
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| products = |
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| production = |
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| services = [[feeder fund]] to [[Bernie Madoff]] |
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| aum = <!-- Only used with financial services companies --> |
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| homepage = <!-- {{URL|examplesite.com}} --> |
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}} |
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'''Aurelia Finance SA''' is a [[Geneva]], Switzerland, [[private bank]] and fund-management company that was a [[feeder fund]] to [[Bernie Madoff]].<ref name="bloomberg1">{{cite news|last=Mulier |first=Thomas |url=http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aHKbfI2zTbJk |title=Aurelia Finance Invested Client Money in Madoff, Le Temps Says |publisher=Bloomberg |date=30 December 2008 |accessdate=21 February 2013}}</ref><ref name="reuters1">{{cite news|url=http://www.reuters.com/article/2009/11/12/madoff-aurelia-idUSLB20666220091112 |title=Aurelia man charged with money laundering-sources |publisher=Reuters |date= |accessdate=21 February 2013}}</ref> |
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Aurelia managed 1.7 billion Swiss francs of clients’ money, and advised clients to invest in the Hermes World Fund, a Madoff feeder fund which was listed in Dublin in January 2004, as part of a “conservative” portfolio.<ref name="bloomberg1"/><ref>{{cite news|url=http://www.reuters.com/article/2009/04/23/madoff-aurelia-idUSLK349520090423 |title=Swiss Madoff investors await Aurelia ruling |publisher=Reuters |date=23 April 2009 |accessdate=21 February 2013}}</ref> |
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==Madoff== |
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It placed assets of its 800 million Swiss francs ($758 million) Hermes World Fund in investments with [[Bernard Madoff]].<ref name="bloomberg1"/><ref>{{cite news|url=http://www.reuters.com/article/2009/03/12/ubp-madoff-idUKLC9683720090312 |author= |title=UBP to partially reimburse Madoff victims |publisher=Reuters |date=12 March 2009 |accessdate=21 February 2013}}</ref> |
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[[Irving Picard]], the trustee charged with recovering money for Madoff fraud victims, alleged that in September 2008 when a JPMorgan Structured Investments Distribution Marketing division employee disclosed JPMorgan plans to redeem its money, he was threatened by employees of Aurelia Finance.<ref name="autogenerated1">{{cite news|last=Murphy |first=Megan |url=http://www.ft.com/intl/cms/s/0/14982e98-2fd5-11e0-91f8-00144feabdc0.html#axzz2LUoJVTOP |title=JPMorgan under fire over Madoff role |publisher=FT |date=3 February 2011 |accessdate=21 February 2013}}</ref><ref>{{cite news|author=Courtney Comstock |url=http://www.cnbc.com/id/42610852/JPMorgan_Did_A_CostBenefit_to_See_If_It_Was_Worth_Keeping_a_Ponzi_Scheme_As_a_Client |title=JPMorgan Did A Cost-Benefit to See If It Was Worth Keeping a Ponzi Scheme As a Client |publisher=Cnbc |date=15 April 2011 |accessdate=21 February 2013}}</ref> Picard asserted in a complaint: "The Aurelia Finance representatives repeatedly opposed [JP Morgan's] plan. At two points in the conversation, the Aurelia Finance representatives made threats ... referring to 'Colombian friends' who could 'cause havoc' and telling [the JPMorgan employee] 'we know where to find you’.”<ref name="autogenerated1"/> JPMorgan reported the threats to the UK’s [[Serious Organised Crime Agency]] in October 2008 by filing a Suspicious Activity Report, concerned that “Colombian drug money” was involved in the Madoff firm.<ref name="autogenerated1"/><ref>{{cite news|last=Schecter |first=Anna |url=http://abcnews.go.com/Blotter/jp-morgan-suspected-madoff-months-prior-arrest/story?id=12294368 |title=JP Morgan Suspected Madoff Months Prior to Arrest |publisher=ABC News |date=2 December 2010 |accessdate=21 February 2013}}</ref><ref>{{cite news|url=http://usatoday30.usatoday.com/money/industries/banking/2011-02-04-madoff-jpmorgan-chase_N.htm |author= |title=Madoff trustee: JP Morgan execs were warned |publisher=usatoday.com |date= |accessdate=21 February 2013}}</ref> |
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Aurelia lost an estimated $800 million of clients' money by investing in [[Bernard Madoff]]'s $65 billion [[Ponzi scheme]], uncovered in December 2008.<ref name="reuters1"/><ref>{{cite news|url=http://uk.reuters.com/article/2009/04/24/uk-madoff-aurelia-sb-idUKTRE53N4BF20090424 |title=Swiss judge allows charges in Madoff losses case |publisher=Reuters |date=24 April 2009 |accessdate=21 February 2013}}</ref> |
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==Post-Madoff== |
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In April 2009, all five directors of Amelia's board (Vladimir Stepczynski, Pascal Cattaneo, Olivier Ador, Laurent Mathysen-Gerst, and Jean-Marc Wenger) were charged by a Geneva magistrate with criminal mismanagement of client assets, and with enriching themselves on [[management fee]]s, finder fees, and [[commission (remuneration)|commission]]s paid for fictitious returns that were never verified.<ref name="reuters1"/> |
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<ref>{{cite book|url=http://books.google.com/books?id=w95aAAAAYAAJ&q=%22Aurelia+Finance%22&dq=%22Aurelia+Finance%22&hl=en&sa=X&ei=R30lUcHiIY3W0gGy9oCgCA&ved=0CDcQ6AEwAQ |author= |title=Bloomberg Markets |publisher= |date= |accessdate=21 February 2013}}</ref> They all then resigned from the board.<ref name="reuters1"/><ref>{{cite news|last=Giles |first=Warren |url=http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQFSA42CpZIA |title=Rothschild Difference With Madoff Becomes Geneva’s Obsession |publisher=Bloomberg |date=7 May 2009 |accessdate=21 February 2013}}</ref> Cattaneo and Stepczynski retained executive roles at the bank, however.<ref name="reuters1"/> The company had one sole director as of 4 June 2009, Gerhard Auer.<ref name="reuters1"/> |
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In November 2009, Prosecutors leveled [[money laundering]] charges at Stepczynski, accusing him of trying to transfer millions of francs out of Switzerland, to move the assets outside the reach of prosecutors.<ref name="reuters1"/> His attempt was uncovered when the private bank that he sought to use did not follow his money transfer instruction, but rather instead authorities.<ref name="reuters1"/> A Geneva examining magistrate then froze the assets of all five of the former Aurelia directors.<ref name="reuters1"/> |
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==See also== |
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*[[List of investors in Bernard L. Madoff Securities]] |
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==References== |
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{{Reflist|2}} |
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{{Madoff investment scandal}} |
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[[Category:Madoff investment scandal]] |
[[Category:Madoff investment scandal]] |
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Revision as of 21:35, 18 September 2013
| Company type | private bank and fund-management company |
|---|---|
| Headquarters | , Switzerland |
Key people | Directors Vladimir Stepczynski, Pascal Cattaneo, Olivier Ador, Laurent Mathysen-Gerst, and Jean-Marc Wenger |
| Services | feeder fund to Bernie Madoff |
Aurelia Finance SA is a Geneva, Switzerland, private bank and fund-management company that was a feeder fund to Bernie Madoff.[1][2]
Aurelia managed 1.7 billion Swiss francs of clients’ money, and advised clients to invest in the Hermes World Fund, a Madoff feeder fund which was listed in Dublin in January 2004, as part of a “conservative” portfolio.[1][3]
Madoff
It placed assets of its 800 million Swiss francs ($758 million) Hermes World Fund in investments with Bernard Madoff.[1][4]
Irving Picard, the trustee charged with recovering money for Madoff fraud victims, alleged that in September 2008 when a JPMorgan Structured Investments Distribution Marketing division employee disclosed JPMorgan plans to redeem its money, he was threatened by employees of Aurelia Finance.[5][6] Picard asserted in a complaint: "The Aurelia Finance representatives repeatedly opposed [JP Morgan's] plan. At two points in the conversation, the Aurelia Finance representatives made threats ... referring to 'Colombian friends' who could 'cause havoc' and telling [the JPMorgan employee] 'we know where to find you’.”[5] JPMorgan reported the threats to the UK’s Serious Organised Crime Agency in October 2008 by filing a Suspicious Activity Report, concerned that “Colombian drug money” was involved in the Madoff firm.[5][7][8]
Aurelia lost an estimated $800 million of clients' money by investing in Bernard Madoff's $65 billion Ponzi scheme, uncovered in December 2008.[2][9]
Post-Madoff
In April 2009, all five directors of Amelia's board (Vladimir Stepczynski, Pascal Cattaneo, Olivier Ador, Laurent Mathysen-Gerst, and Jean-Marc Wenger) were charged by a Geneva magistrate with criminal mismanagement of client assets, and with enriching themselves on management fees, finder fees, and commissions paid for fictitious returns that were never verified.[2] [10] They all then resigned from the board.[2][11] Cattaneo and Stepczynski retained executive roles at the bank, however.[2] The company had one sole director as of 4 June 2009, Gerhard Auer.[2]
In November 2009, Prosecutors leveled money laundering charges at Stepczynski, accusing him of trying to transfer millions of francs out of Switzerland, to move the assets outside the reach of prosecutors.[2] His attempt was uncovered when the private bank that he sought to use did not follow his money transfer instruction, but rather instead authorities.[2] A Geneva examining magistrate then froze the assets of all five of the former Aurelia directors.[2]
See also
References
- ^ a b c Mulier, Thomas (30 December 2008). "Aurelia Finance Invested Client Money in Madoff, Le Temps Says". Bloomberg. Retrieved 21 February 2013.
- ^ a b c d e f g h i "Aurelia man charged with money laundering-sources". Reuters. Retrieved 21 February 2013.
- ^ "Swiss Madoff investors await Aurelia ruling". Reuters. 23 April 2009. Retrieved 21 February 2013.
- ^ "UBP to partially reimburse Madoff victims". Reuters. 12 March 2009. Retrieved 21 February 2013.
- ^ a b c Murphy, Megan (3 February 2011). "JPMorgan under fire over Madoff role". FT. Retrieved 21 February 2013.
- ^ Courtney Comstock (15 April 2011). "JPMorgan Did A Cost-Benefit to See If It Was Worth Keeping a Ponzi Scheme As a Client". Cnbc. Retrieved 21 February 2013.
- ^ Schecter, Anna (2 December 2010). "JP Morgan Suspected Madoff Months Prior to Arrest". ABC News. Retrieved 21 February 2013.
- ^ "Madoff trustee: JP Morgan execs were warned". usatoday.com. Retrieved 21 February 2013.
- ^ "Swiss judge allows charges in Madoff losses case". Reuters. 24 April 2009. Retrieved 21 February 2013.
- ^ Bloomberg Markets. Retrieved 21 February 2013.
- ^ Giles, Warren (7 May 2009). "Rothschild Difference With Madoff Becomes Geneva's Obsession". Bloomberg. Retrieved 21 February 2013.